FUND IN FOCUS 9
„ We engage with selected
heavy-emitting companies in order to drive real change. Alexandra Christiansen portfolio manager at Nordea Asset Management
panies to order to drive real change,” says Alexandra Christiansen, portfolio manager of the new fund. “The reality is that many of these companies will still be around in the low-carbon economy of the future, and some may even play a crucial role in achieving important sustainability goals. Excluding them from portfolios may look good on paper but will have a limited impact in the real world.” Christiansen and her team believe a significant factor in unlocking value in these businesses is convincing the wider market of their continued relevance and ability to generate positive returns in the future green economy. “This means making commitments with full transparency and backed by science, to which we can hold management teams accountable and meas- ure progress,” she says. “It also means demonstrating the viability of their sustainability plans in practice, backed by credible capital allocation.” In running the Nordea 1 – Global Climate Engagement Fund , Christiansen is supported by Thomas Sørensen and Henning Padberg, the highly regarded managers of NAM’s Global Climate and Environment and Global Climate and Social Impact strategies, as well as the broader Fundamental Equities Team. They also draw upon the extensive engagement expertise of NAM’s 22-strong Responsi- ble Investments Team. 3 Five primary sustainability pillars In order to enact meaningful change through engagement, the team focuses on five primary sustainability factors. Unsurprisingly, one of the key considerations are greenhouse gas emissions, which are the leading driver of global warming. As econom- ic production requires substantial energy inputs, energy management is also paramount for success- ful climate action. Water and waste management is another vital issue. The world’s limited resources cannot meet growing demand, which creates long- term uncertainty for companies highly dependent on natural assets. Similarly, companies need guidance on natural resource management. This includes using recycled and renewable materials, reducing the use of key supplies, and maximising resource efficiency in manufacturing. Finally, corporate management
The increasing consideration of environmental, social and governance (ESG) factors contributed to this flight of capital, as asset managers sought to demon- strate strong sustainability credentials. Nordea Asset Management (NAM) has built up years of experience in environmentally focused investing, with its renowned Nordea 1 – Global Climate and Environment Fund – one of Europe’s largest Arti- cle 9 vehicles 2 – launched more than 15 years ago. But while the Global Climate and Environment strat- egy achieved success by identifying companies offer- ing innovative climate solutions, NAM understood the need to actively target real-world emissions change. This was an important reason behind launching the Nordea 1 – Global Climate Engagement Fund last year: “We engage with selected heavy-emitting com-
2 Source: © 2023 Morningstar, Inc. All Rights Reserved. Data as of: 31.03.2023. 3 As at 31.03.2023
ISSUE 01.2023
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